Bangladesh Bank Introduces New FTZ Framework to Facilitate Faster, Lower-Cost Imports
Bangladesh Bank has introduced a new regulatory framework to simplify import operations in the country’s Free Trade Zones (FTZs), aiming to reduce costs, improve supply chain efficiency, and strengthen export-oriented and manufacturing industries.
The central bank issued the detailed guidelines on Thursday, saying the new framework will allow goods imported into FTZs to be stored for extended periods under consignment arrangements while reducing credit risks for local banks.
Under the new rules, ownership of imported goods will remain with the foreign supplier until the products are sold or used in production. As a result, banks will not treat such goods as inventory before ownership is transferred, shielding them from related lending risks.
The framework will benefit export-oriented manufacturers, production industries, approved trading importers, and logistics service providers operating within FTZs.
Bangladesh Bank also clarified the treatment of FTZ-related transactions. Goods purchased by domestic buyers from FTZs will be considered imports, while sales by FTZ-based entities will be treated as exports for the seller and imports for the buyer. Such transactions must comply with the prescribed Export Permit (EXP) and Import Permit (IMP) procedures.
The guidelines require all FTZ-related payments to be made in freely convertible foreign currencies.
Under the consignment import facility, goods may be stored in FTZs for up to 48 to 60 months, depending on the applicable provisions. For deferred payment imports, including buyers’ credit and suppliers’ credit, the maximum repayment period has been set at 270 days.
The central bank also said Authorized Dealer (AD) banks will be allowed to provide financing facilities similar to those available in specialized economic zones. Offshore Banking Units (OBUs) may offer foreign currency financing in accordance with existing regulations.
According to Bangladesh Bank, the new framework is expected to make FTZ-based import and trade activities more efficient, enhance the competitiveness of export-oriented and domestic manufacturing sectors, and improve the overall efficiency of the country’s supply chain.
